In an era of heightened cyberthreats and data breaches, there’s been an increasing focus on regulatory compliance. In addition to the global effort to enhance data privacy, the SEC has updated incident reporting guidelines. Businesses face increasing pressure to maintain compliance across regions, mitigate risks and improve consumer protection and stakeholder trust.
Transparency and Accountability in Cybersecurity Practices
The SEC has adopted rules requiring companies to disclose cybersecurity incidents by providing information about their nature, scope and impact. Businesses must also provide accurate, detailed disclosures and avoid generic or misleading information about cybersecurity risks and incidents. The SEC emphasizes the need for effective internal controls and procedures to help provide timely, accurate reporting of cybersecurity incidents and evaluate the incident’s impact on the company’s risk profile. Organizational efforts in these areas don’t go unnoticed either, as the SEC has recognized companies that cooperate with investigations and take steps to remediate control deficiencies.
The Most Likely Challenges IT and Security Teams May Face
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